Urban infrastructure development and basic public service – in particular, water supply services – have lagged behind rapid economic growth in India, Nepal and Sri Lanka. To attract private sector investment in the delivery of water services, a sound regulatory framework for water tariffs is needed. This technical assistance will analyze tariff formulas that cover operation and maintenance costs; approval processes; lifeline tariffs for the poor; and consultation processes to introduce tariff increases to the public. Between August 2012 and July 2013, the TA will produce national guidelines for tariffs that enable full cost recovery and conduct a pilot program involving five Indian regions.